The Board, trading as Tourism New Zealand (TNZ), markets New Zealand as a tourism destination.
In a media statement, Mr Key says, "I would like to thank Kerry for her work on the board since she was first appointed in 2011, and look forward to her continued excellent contribution to the work of TNZ.
"Due to her current term expiring within the pre-election period, this reappointment is for a one-year term starting on 15 August. This will provide continuity and stability to the board."
Ms Prendergast is the former Mayor of Wellington, holds an MBA specialising in Marketing and Strategy, and has extensive experience in promoting Wellington as a tourist destination. She is currently the Chair of the Environmental Protection Agency, and Executive Chair of the NZ International Festival of the Arts and the Wellington Jazz Music Festival Trust.